The spirit of volunteerism is alive and well in the United States. According to the Bureau of Labor Statistics. About 64.5 million Americans volunteered at least once between September 2003 and September 2004. If you did volunteer work for a charitable organization in 2005 and you itemize deductions on your tax return, you may be able to count some of your expenses as charitable donations for the year.
You may not, however, deduct the cost of your time, even if the organization would have to pay someone else to do the same job. Here are some expenses that are deductible:
Car expenses – As long as you don’t receive reimbursement, you can deduct out-of-pocket expenses incurred in traveling to and from the place where you volunteer or in the driving you do on behalf of a charitable organization. You can deduct either the actual cost of gas and oil used in these activities or apply the standard mileage rate of 14 cents a mile. The costs of repairs, maintenance, tires and insurance are not deductible, nor are registration fees or depreciation. Parking fees and tolls are deductible. Just make sure you keep appropriate records so you can back up your deduction.
Mileage rate increase for Katrina relief – The standard charitable mileage rate has been raised to 70 percent of the business mileage rate for taxpayers using a vehicle to provide donated services for Katrina relief. The higher rate applies from August 25, 2005, through December 31, 2006.
Overnight travel expenses – If you travel on behalf of a charitable organization (to a conference, for example), you may be able to deduct your un-reimbursed transportation costs and reasonable lodging and meal expenses. None of the expenses can be for your personal entertainment or for accompanying family members.
Office supplies – If you purchase materials (paper, envelopes, ink cartridges, etc.) and use them for volunteer work you do for a qualified organization, you can deduct any un-reimbursed expenses.
Volunteers often do not realize they may be able to count some of their expenses as charitable donations. If you have questions, please let us know.
For more information, please call Theresa Stewart at 661-775-9534.